The Restaurant Group buys Barburrito for £7m

12 July 2022 by
The Restaurant Group buys Barburrito for £7m

The Restaurant Group (TRG) has acquired Mexican-style fast casual restaurant chain Barburrito for £7m, with plans to double the estate over the next four years.

TRG said Barburrito's strong trading gave the group confidence in its ability to "align with and extend TRG's track record of market outperformance", with "significant scope" to further develop and expand the brand, particularly in the south of England.

Barburrito will be integrated into TRG's leisure and concessions division, with the key operational team from Barburrito retained. The business previously operated two Barburrito sites as franchises in UK airports.

The total consideration of £7m will be paid entirely in cash by TRG and represented a 4.4x run-rate earnings before interest, tax, depreciation and amortisation (EBITDA) multiple. The transaction has been done on a debt-free and cashfree basis. TRG acquired the business from its shareholders.

Barburrito operates 16 sites located in shopping centres, city centres and transport hubs, and has seen a 20% uplift in like-for-like sales against 2019 during the year to date.

For the period to 26 September 2021, Barburrito recorded a pre-tax profit of £1.7m and its sites are expected to contribute adjusted company level EBITDA and profit before tax of around £1.6m and £800,000, respectively, to TRG over the next 12 months.

The Restaurant Group operates approximately 400 restaurants and pub restaurants throughout the UK under brands including Wagamama, Frankie & Benny's and Brunning & Price. It also operates a multi-brand concessions business which trades principally in UK airports. In addition, the Wagamama business has a 20% stake in a joint venture operating five Wagamama restaurants in the US and more than 50 franchise restaurants.

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking